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DECISION No

DECISION No. 2790/2002/QD-BYT OF JULY 25, 2002 ISSUING THE REGULATION ON MANAGEMENT AND USE OF OFFICIAL DEVELOPMENT ASSISTANCE (ODA) OF THE HEALTH MINISTRY

THE MINISTER OF HEALTH

Pursuant to the Government’s Decree No.68/CP of October 11, 1993 defining the functions, tasks, powers and organizational structure of the Health Ministry;

Pursuant to the Government’s Decree No.17/2001/ND-CP of May 4, 2001 issuing the Regulation on Management and Use of Official Development Assistance (ODA);

Pursuant to Circular No.06/2001/TT-BKH of September 20, 2001 of the Ministry of Planning and Investment guiding the implementation of the Regulation on Management and Use of Official Development Assistance (ODA), issued together with the Government’s Decree No.17/2001/ND-CP of May 4, 2001;

Proceeding from the requirements of the ODA management work of the Health Ministry;

At the proposal of the director of the Planning Department- the Health Ministry,

DECIDES:

Article 1.- To issue together with this Decision the Regulation on management and use of official development assistance of the Health Ministry.

Article 2.- This Decision takes effect 15 days after its signing. All previous provisions contrary to this Decision are hereby annulled.

Article 3.- The director of the Planning Department shall have to guide and inspect the implementation of this Decision.

Article 4.- The director of the Office, the chief inspector, the directors of the departments and divisions, and the heads of the units under the Health Ministry shall have to implement this Decision.

Minister of Health
DO NGUYEN PHUONG

REGULATION ON MANAGEMENT AND USE OF OFFICIAL DEVELOPMENT ASSISTANCE OF THE HEALTH MINISTRY

(Issued together with the Health Minister’s Decision No. 2790/2002/QD-BYT of July 25, 2002)

Chapter I

GENERAL PROVISIONS

Article 1.- Scope of regulation

This Regulation regulates all activities of attracting, managing and using official development assistance sources (including non-refundable aids and preferential loan capital, hereinafter referred collectively to as ODA) of the Health Ministry.

Article 2.- Objects of application

a/ This Regulation shall apply to all programs and projects belonging to the departments, divisions, office and inspectorate of the Health Ministry as well as units under the Health Ministry, in the reception, management and use of ODA.

b/ The health programs and projects carried out by units not under the Health Ministry shall not fall within this Regulation’s governing scope.

c/ For programs and projects defined in Clause b of this Article, the Health Ministry assigns the Planning Department to act as the main body receiving the program and project dossiers in order to coordinate with the concerned departments and divisions in performing the Health Ministry’s task of State management in joining the appraisal or giving medical consultations.

Article 3.- Basic principles

1. The Health Ministry’s ODA constitutes a source of State budget, which must be received, managed and used strictly according to law provisions.

2. In cases where an aid agreement signed between the Vietnamese State or Government and a donor contains different provisions, such provisions shall apply.

Article 4.- Term interpretation

In this Regulation, the following terms shall be construed as follows:

1. The managing agency is the Health Ministry for ODA programs and projects (hereinafter called programs and projects), which are deployed and implemented directly by the units within and under the Health Ministry, and projects in the health service assigned by the Prime Minister to the Health Ministry for management and implementation.

2. Project owners mean units attached to the Ministry or non-business units under the Ministry (hereinafter referred collectively to as units), which are assigned to directly manage and use the aid capital and reciprocal capital sources for program and project implementation according to the approved contents.

Article 5.- Registration of the list and contents of ODA programs and projects

On the basis of the health service’s development strategy and planning, the Health Minister shall consider and regulate the plan on attraction and use of ODA in each period as well as the list and contents of the Health Ministry’s ODA programs and projects calling for financial assistance, for registration.

Article 6.- Approval of ODA programs and projects

1. Programs and projects subject to approval by the Prime Minister according to provisions in Clause 1, Article 20 of the Government’s Decree No.17/2001/ND-CP of May 4, 2001 shall be considered and commented by the Health Minister before they are submitted to the Prime Minister for approval. In case of necessity, the Minister may authorize a vice-minister in charge of planning, investment and foreign aids to consider them.

2. Programs and projects subject to approval by the Health Minister:

a/ The Minister shall approve group-B capital construction investment programs and projects and technical support projects not related to the institution, policies, laws, administrative reform, culture, information, security and defense, which have a value of between USD 500,000 and under USD 1,000,000 or equivalent.

b/ The vice-minister in charge of planning, investment and foreign aids shall approve group-C capital construction investment programs and projects and technical support projects not related to the institution, policies, laws, administrative reform, culture, information, security and defense, which have a value of under USD 500,000 or equivalent.

Chapter II

SPECIFIC PROVISIONS

Part 1. ATTRACTION AND MOBILIZATION OF ODA

Article 7.- General principles in the attraction and mobilization of ODA

The units shall attract and mobilize ODA on the following bases:

a/ The State’s regulations and policies;

b/ The Health Ministry’s strategies, plannings as well as annual, 5-year and 10-year plans;

c/ The Health Ministry’s priority policies for the development of the entire service and various fields in each period;

d/ The units’ needs for task performance;

e/ The donors’ guidelines, purposes, strengths and priorities;

f/ The initiative role of the Health Ministry and project-implementing units.

Article 8.- Drawing up lists of priority programs and projects for ODA mobilization

In August annually, the units shall take initiative in drawing up priority lists and preliminary schemes for ODA use (according to the forms in Appendix 2 of the Ministry of Planning and Investment’s Circular No.06/TT-BKH of September 20, 2001) and send them to the Health Ministry (the Planning Department).

The Planning Department shall act as the main body to sum up the Health Ministry’s priority list for ODA use and coordinate with the International Cooperation Department and concerned departments in considering and submitting them to the Minister for approval.

Article 9.- Notifying the list of programs and projects to be considered for financial assistance

The Planning Department shall have to notify in writing the units of the list of programs and projects agreed by the donors to consider for financial assistance in each period and already approved by the Prime Minister (hereinafter called programs and projects to be considered for financial assistance).

Part 2. PREPARATION AND ELABORATION OF CONTENTS OF ODA PROGRAMS AND PROJECTS

Article 10.- Determining project owners and setting up program and project preparation boards

1. Determining project owners: The Planning Department shall be the main body to coordinate with the concerned departments in suggesting the project owners to the vice minister in charge of planning and investment before submitting them to the Minister for approval.

2. Setting up program and project preparation boards (hereinafter called project preparation boards for short): This shall be effected after the Minister approves the project owners.

2.1. For group-A projects using loan capital, relating to many fields and policies of the health service and deployed on a large scale: After receiving the Ministry of Planning and Investment’s official written notice on the list of programs and projects to be considered for financial assistance, the Planning Department shall act as the main body to coordinate with the Organization and Personnel Department, the International Cooperation Department, the Board for Management of Projects and the concerned departments in suggesting, on the basis of the projects’ major contents, the composition of the project preparation boards and their heads to the vice minister in charge of planning and investment before submitting them to the Minister for approval. After the Minister’s approval, the Organization and Personnel Department shall draft a decision and submit it to the Ministry’s leadership for signing and promulgation.

2.2. For projects not defined in Clause 2.1 of this Article: After the competent authority approves the list of ODA projects, the Planning Department shall act as the main body to coordinate with the Organization and Personnel Department, the International Cooperation Department, the Board for Management of Projects and the project owners in suggesting, on the basis of the projects’ principal contents, the composition of the project preparation boards and their heads, to the vice minister in charge of planning and investment before submitting them to the Minister for approval. After the Minister’s approval, the Organization and Personnel Department shall draft a decision and submit it to the Ministry’s leadership for signing and promulgation.

2.3. The specific procedures shall comply with the guidance of the Health Ministry.

3. The project preparation boards shall be responsible for elaborating pre-feasibility study reports, feasibility study reports and program or project documents to be examined and approved by competent authorities. The main contents of the program and project preparation plans are prescribed in Article 14, Chapter III of the Government’s Decree No.17/2001/ND-CP of May 4, 2001 and shall comply with detailed guidance of the Health Ministry.

4. The capital for preparation of ODA programs and projects shall comply with the provisions in Article 12, Chapter III of the Government’s Decree No.17/2001/ND-CP of May 4, 2001. The project owners shall be responsible for making suggestions on capital demand and sources of capital for program and project preparation and sending them to the Health Ministry (the Planning Department and the Finance and Accountancy Department). The Finance and Accountancy Department shall have to coordinate with the Planning Department in guiding the project owners to determine and arrange capital and appropriate capital sources for program and project preparation.

Article 11.- Elaborating contents of capital construction investment programs and projects

The pre-feasibility and feasibility study reports of capital construction investment programs and projects shall be elaborated according to current regulations on investment and construction management, clearly stating the domestic capital sources and ODA capital sources, the conditions already agreed upon with the donors..., and added with a number of contents as prescribed in Articles 15 and 16, Chapter III of the Government’s Decree No.17/2001/ND-CP of May 4, 2001.

In the feasibility study reports of programs or projects, it is necessary to arrange rational funding sources from ODA capital or reciprocal capital sources for inspecting and evaluating activities.

Article 12.- Elaborating contents of documents of technical support programs and projects

The documents of technical support programs and projects shall be elaborated according to the detailed forms provided for in Appendix 3 to Circular No.06/2001/TT-BKH of September 20, 2001 of the Ministry of Planning and Investment, and the donors’ requests.

In the program or project documents, it is necessary to arrange rational funding sources from ODA capital or reciprocal capital sources for inspecting and evaluating activities.

Part 3. APPRAISAL AND APPROVAL OF CONTENTS OF ODA PROGRAMS AND PROJECTS

Article 13.- Appraising ODA programs and projects subject to approval by the Prime Minister

The Ministry of Planning and Investment shall assume the prime responsibility in appraising ODA programs and projects subject to approval by the Prime Minister.

The appraisal of technical support ODA programs and/or projects shall comply with the provisions in Section III of Circular No.06/2001/TT-BKH of September 20, 2001 of the Ministry of Planning and Investment.

The Health Ministry hereby provides for a number of specific points (including capital construction investment projects and technical support projects):

1. The to be-appraised programs and projects must be on the list approved by the Prime Minister (for projects outside the already approved list, their reception must be approved in principle by the Health Minister).

2. A program’s or project’s valid dossier shall comprise:

a/ The project owner’s written request for reception of the project.

b/ The project documents (or pre-feasibility study/feasibility study reports for capital construction investment projects): at least 5 copies in Vietnamese suited to the program’s or project’s preliminary scheme already approved by the Prime Minister.

c/ The draft agreement on the project to be signed between Vietnam’s representatives and the donor’s representatives: at least 5 copies in Vietnamese and another language proposed by the donor.

3. The Planning Department shall be the main body of the Health Ministry to receive the units’ program and project dossiers, which shall be commented by the vice-minister in charge of the concerned domains and the relevant departments.

4. The vice-minister in charge of planning and investment shall preside over meetings of the concerned departments and project preparation boards in order to examine and revise the project documents before the Health Ministry sends written requests to competent authorities for appraisal of projects to be submitted to the Prime Minister for approval.

Article 14.- Appraising ODA programs and projects subject to approval by the Health Minister

1. Conditions for appraisal: A project is qualified for appraisal when it satisfies two following conditions:

a/ It falls on the list of ODA programs and projects already approved by the Prime Minister (for projects outside this list, the appraisal shall be conducted only after they are consented in principle by the Prime Minister).

b/ The appraisal dossier is valid: as defined in Clause 2, Article 13 of this Regulation.

2. Forms of appraisal: Depending on the contents, scope and characteristics of the to be- appraised programs or projects, the Health Ministry shall conduct the appraisal in one of 3 following forms:

a/ Summing up written opinions of the concerned departments and submitting them to the Ministry’s leadership for consideration and approval, for technical support projects with contents already agreed by the departments participating in appraisal and with a capital level of under USD 300,000 or equivalent.

b/ Organizing the appraisal, which shall be presided over by the Planning Department:

b1/ Technical support projects with a capital level of between USD 300,000 and USD 500,000 or equivalent.

b2/ The annual plan of action for projects with documents or feasibility study reports already approved by the Prime Minister for a cycle.

c/ Organizing the appraisal presided over by a vice minister, for technical support projects with a capital level of over USD 500,000 or equivalent and group-B and -C capital construction investment projects.

3. The major appraising body and departments participating in appraisal:

a/ The Planning Department shall be the main body to organize the appraisal and have to coordinate with the concerned departments and divisions on the basis of their assigned State management functions.

b/ The units participating in appraisal shall be accountable before the Minister and before law for the contents of their opinions on ODA programs and projects.

Part 4. NEGOTIATION AND SIGNING OF ODA PROGRAMS AND PROJECTS

Article 15.- Bases for negotiation and signing of specific international agreements on ODA

1. Bases for negotiation and signing of specific international agreements on ODA are program and project documents (feasibility study reports or investment decisions for capital construction investment projects) already approved by competent authorities.

2. In a number of special cases, in order to ensure the schedule of ODA capital mobilization, the competent authority shall, on the basis of ODA programs’ or projects’ nature, permit the use of the already approved pre-feasibility study reports for negotiation and signing of specific international agreements on ODA.

Article 16.- Negotiation and signing

For programs and projects which must be negotiated and signed by the Health Ministry and the donors, the International Cooperation Department shall assume the prime responsibility and coordinate with the concerned departments and project owners in carrying out the negotiation and signing procedures strictly according to current regulations.

Part 5. MANAGEMENT OF IMPLEMENTATION AND USE OF ODA PROGRAMS AND PROJECTS

Article 17.- Organizing the ODA program and project-implementing apparatus

1. After the programs or projects are approved, the project owners shall have to organize the program- or project- managing apparatus to ensure the project operation and use of ODA capital as well as reciprocal capital in strict compliance with the State’s management regulations and commitments with the donor.

2. The project owners shall draw up lists of expected members of the project management boards and send them to the Health Ministry (the Planning Department).

3. The Planning Department shall act as the main body to consult the relevant departments, the Organization and Personnel Department and the Board for Management of Projects on the projected lists of project management board members before submitting them to the Ministry’s leadership for approval.

4. The Organization and Personnel Department shall assume the prime responsibility and coordinate with the Planning Department in submitting to the Ministry’s leadership for issuance decisions to set up project management boards.

5. The functions, tasks, organization, personnel and operation regulations of the project management boards shall comply with the provisions at Point 1, Part V of Circular No.06/2001/TT-BKH of September 20, 2001 of the Ministry of Planning and Investment, and the Health Ministry’s guidance.

Article 18.- Managing the implementation and use of ODA programs and projects

On the basis of the project documents already approved by competent authorities, the projects’ annual plans of action shall be elaborated and sent to the Health Ministry (the Planning Department) for submission to the Ministry’s leadership for approval. The approved annual plans of action shall serve as basis for deployment and implementation of the programs and projects in accordance with Government’s and the Health Ministry’s stipulations, with special attention paid to some following contents:

a/ Activities of supplying goods, providing consultancy services and capital construction of programs and projects must go through bidding under the State’s current regulations on bidding for goods procurement and service provision. In cases where a specific international agreement with donor(s) has separate provisions on bidding for goods procurement and service provision, such provisions shall apply.

Regarding the bidding work of ODA programs and projects, the Planning Department is assigned to act as the main body to coordinate with the concerned departments in guiding and organizing the performance of this work according to the Health Minister’s Document No.5797/YT-KH of July 19, 2002.

b/ Activities of supplying specialists for ODA projects shall comply with the Regulation on specialists of ODA projects, issued together with the Prime Minister’s Decision No.211/1998/QD-TTg. The project owners shall forward applications for certification of ODA specialists, made according to the set forms, to the Health Ministry. The International Cooperation Department shall act as the main body to coordinate with the Planning Department in certifying program and projects specialists, which shall serve as basis for the functional agencies to consider the regime of privileges and immunities according to the provisions of the Regulation on ODA specialists.

c/ Activities of sending cadres overseas on survey or study tours under the programs’ or projects’ plans must comply with the Health Ministry’s current regulations on overseas training.

d/ ODA projects using loan capital shall carry out the procedures to withdraw capital for disbursement according to the provisions of the loan agreement (credit agreement) signed with each donor. The capital withdrawal applications shall be sent to the Finance Ministry and concurrently to the Finance and Accountancy Department and the Planning Department of the Health Ministry for monitoring the capital disbursement tempo.

e/ ODA projects using non-refundable aids shall effect capital disbursement for project money- and goods-receiving activities through carrying out the aid certification procedures at the Health Ministry’s Planning Department before sending the applications to the Finance Ministry. The specific requirements on financial management shall comply with the Health Minister’s Decision No.992/2002/QD-BYT of March 26, 2002.

f/ ODA projects must comply with the Tax Ordinance under current regulations and must estimate enough reciprocal funding to satisfy tax requirements. In cases where international agreements signed between the Government and the donors contain different tax provisions, the provisions of such international agreements shall apply.

g/ In cases where a project’s objectives have been achieved but its approved capital is not used up or there’s a surplus capital amount due to the difference between the bidding price and the price offered for the bid, the project owner must report it to the Health Ministry (the Planning Department and the Finance and Accountancy Department) for consideration to carry out necessary procedures for the use of that surplus capital amount.

h/ For programs and projects for which the reciprocal capital has not yet been arranged in the budget plan or which have an unexpected demand for reciprocal capital, the project owners shall send written explanations on their reciprocal capital demand to the Health Ministry (the Planning Department and the Finance and Accountancy Department) for consideration to carry out the prescribed necessary procedures to ensure enough reciprocal capital for project operation.

Article 19.- Adjustment, amendment of programs and projects

In the course of implementation of a program or project, if there are changes or adjustments against its initial approving decision, the following should be complied with:

1. The project owner sends a written explanation on the contents and plan of adjustment to the Board for Management of Projects.

2. The Board for Management of Projects comments on the project owner’s request for adjustment and sends it to the Planning Department for consideration or appraisal organization.

3. The forms of appraisal shall comply with the provisions in Articles 13 and 14 of this Regulation.

4. The issuance of an adjustment-approving decision shall comply with the provisions in Article 31 of the Government’s Decree No. 17/2001/ND-CP of May 4, 2001, the guidance at Point 3, Part V of Circular No. 06/2001/TT-BKH of September 20, 2001 of the Ministry of Planning and Investment, and the Health Ministry’s guidance.

In cases where an already signed international agreement on ODA must be amended and/or supplemented, such must comply with the provisions of the Ordinance on the Conclusion and Implementation of International Agreements.

Part 6. MONITORING, EVALUATION OF ODA PROGRAMS AND PROJECTS

Article 20.- Monitoring, inspection and evaluation of implementation of programs and projects

1. The project owners shall be responsible for directing the project management boards to regularly monitor, inspect and evaluate the operations of ODA programs and projects so as to provide accurate information on the implementation tempo, results of capital disbursement and efficiency of the programs and projects at the requests of the Health Ministry and State management agencies in charge of ODA, and suggest solutions when necessary.

2. Regularly or irregularly, the Health Ministry (the Planning Department in coordination with the concerned departments and divisions) shall organize the inspection and evaluation of or, if necessary, hire consultants to evaluate the implementation of programs and projects. The Ministry’s leadership shall decide on the hiring of consultants for program or project evaluation.

3. The Health Ministry assigns the Planning Department to act as the main body to coordinate with the Finance and Accountancy Department, the International Cooperation Department and the Board for Management of Projects in organizing the evaluation of projects upon their completion.

4. The Health Ministry assigns the Board for Management of Projects to monitor and inspect the implementation tempo, organize the annual and mid-term evaluation of ODA projects and report to the Planning Department, the Finance and Accountancy Department and the International Cooperation Department thereon.

Article 21.- Provisions on the reporting regime applicable to programs and projects

1. The project owners shall have to make quarterly, biannual, annual and project-completion reports according to the forms prescribed in Appendices 4, 5, 7, 8 and 9 of Circular No.06/2001/TT-BKH of September 20, 2001 of the Ministry of Planning and Investment, and send them to the Planning Department and the Board for Management of Projects of the Health Ministry.

The project-completion reports must be sent concurrently to the Finance and Accountancy Department, the International Cooperation Department, the specialized departments as well as the Ministry of Planning and Investment and the Finance Ministry.

Group-A programs and projects must draw up monthly reports according to the form set in Appendix 6, which shall be sent to the Board for Management of Projects and the Planning Department of the Health Ministry, the Ministry of Planning and Investment and the Finance Ministry.

2. The Board for Management of Projects shall have to sum up monthly and quarterly reports to be sent to the general sections of the Government and concurrently to the Planning Department and the Finance and Accountancy Department.

3. The Planning Department shall have to make biannual and annual wrap-up reports as well as program and project-completion evaluation reports, and send them to the Ministry of Planning and Investment, the Finance Ministry and concerned agencies.

4. The reports must ensure the truthfulness, accuracy and fullness according to the set requirements and time limit.

Article 22.- Pre-acceptance test and exploitation

For capital construction investment programs and projects, before they are completed and put to use, the project owners must strictly comply with the State’s regulations on pre-acceptance test, partial or whole transfer, asset registration and capital settlement of projects..., and current regulations on capital construction investment.

Upon the completion of technical support programs and projects, the project owners must organize the pre-acceptance test and exploitation of such programs and projects and take measures to maintain and promote their efficiency. The asset transfer shall comply with the provisions in Article 39, Chapter IV of the Health Minister’s Decision No.992/2002/QD-BYT of March 26, 2002.

Chapter III

IMPLEMENTATION PROVISIONS

Article 23.- The heads of the project-implementing units, the directors of the concerned departments of the Health Ministry shall have to popularize and implement this Regulation. In the course of implementation, this Regulation may be considered by the Health Minister for amendment and/or supplementation to suit the practical situation.

Minister of Health
DO NGUYEN PHUONG